Affordable Housing Report 2021

City of Williamsburg

Affordable Housing

Report GIO Workgroup Product

2021

Welcome The word report is not exactly thrilling or engaging. Combine that word with a problem often thought insurmountable, and you have a recipe for insomnia. This “Report” on affordable housing in and around Williamsburg aims for easy and engaging.

This final product of the City’s Affordable Housing Workgroup is designed to provide the user with the recommended tool kit for improving, not solving, the present and growing affordable housing crisis in Williamsburg and the greater region.

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2021 Affordable Housing Report Contents Pages 4 - 7

Background What workgroup? What did they do? What data did they use? What is next?

Pages 8 - 23

Recommendations In the short and long term, these concepts are actionable and impactful.

Page 22 - 23

Final Thoughts The workgroup’s final thoughts on improving the affordable housing crisis in Williamsburg.

For more information, visit williamsburgva.gov.

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A little bit of

Background Overall, approximately 1,600 households, or one-third of all city households, report being – 2021 City of Williamsburg cost-burdened.

Housing Affordability Analysis, p. 5 Shernita Bethea

Leigh Houghland

Barbara Ramsey

Sarah Stafford

Matthew Boyer

Sean Hughes

Caleb Rogers

William Turner

Susan Gaston

Rick Overy

Carol Sale

Abbitt Woodall

Diane Hartley

Vaughn Poller

Justin Shawler

Hampton Roads Planning District Commission

Chesapeake Bank

William & Mary (Admin.)

William & Mary (Student) Williamsburg Area Association of Realtors

Economic Development Authority

Peninsula Agency on Aging

James City County

City Council

City Council

Williamsburg Health Foundation

William & Mary (Faculty) Wells Fargo

York County

Planning Commission

Workgroup Members The Williamsburg City Council made

of housing units that may be needed

housing affordability a priority in

by 2040 to accommodate population

its 2021-2022 Goals, Initiatives, and

growth in the area.

Outcomes, a document that outlines the City’s strategic objectives.

reviewed affordable housing plans

To tackle this priority, City Manager

from Fairfax County, Charlottesville, and

Andrew O. Trivette formed a workgroup

Alexandria, as well as 10 suggestions

to consider housing initiatives that include defining affordable housing in Williamsburg, density rewards, and inclusionary housing. The Affordable Housing Workgroup comprised 15 members who were assisted by seven City staff members. The group convened for meetings between February and October 2021.

Early on, the workgroup contracted Dr. Sarah Stafford, a William & Mary professor of economics and public

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Between March and June, the group

from the Neighborhood Balance Committee, a former City workgroup that focused on neighborhood stability issues.

Following this review, the number of possible initiatives grew to 80. The Affordable Housing Workgroup and City staff winnowed this extensive list down to 13. From June to October, the workgroup ranked these 13 concepts in order of preference for short- and longterm implementation.

policy, for an updated Affordable

The following report presents the result

Housing Analysis to project the number

of the nine-month scope.

Defining & Setting

Targets

The Affordable Housing (AFH) plans studied by the workgroup had one shared attribute: They each established a target number of affordable housing units that would be required to satisfy demand by income level.

Before estimating the need, the workgroup first defined income categories for Williamsburg that are consistent with federal definitions, as

shown in the chart below. Additionally, the workgroup considered the number of households spending more than 30% of their incomes on rent and utilities, which is the definition of housing costburdened. The job sector information is based on data from the Bureau of Labor Statistics’s Quarterly Census of Employment and Wages. Because we are not showing income ranges, some worker classes have been combined.

Income Categories % of Average Median Income

<30%

Annual Income Up to

Job Sector

$25K

Minimum Wage Workers

30-50% Very Low Income

$40K

Leisure and Hospitality

50-80%

$60K

Education and Construction

Extremely Low Income

Low Income

80-100% Moderate Income

>100%

Other Households

$125K

Business and Financial Services

>$125K

High Wage Earners Bureau of Labor Statistics 5

Updated

Data

To obtain need projections, the workgroup commissioned Dr. Sarah Stafford of William & Mary to update her 2018 Williamsburg Housing Study. Dr. Stafford prepared current data for the City of Williamsburg and Greater Williamsburg in two reports. She used population projections prepared by the Weldon Cooper Center at the University of Virginia in 2019, the current household formation patterns, and the current distribution of households across the five income groups to estimate the affordable housing needs in 2030 and 2040.

Even with likely students removed, well over 50 percent of households have incomes below the regional Median Family Income (MFI), showing that overall the city contains a higher percentage of low-income households than do the surrounding counties.

To see both of the Stafford Housing studies in full, visit williamsburgva.gov/affordablehousing.

– 2021City of Williamsburg Housing Affordability Analysis, p. 2

Less than 10 percent of people who work in the city actually live in the city.

– 2021 City of Williamsburg Housing Affordability Analysis, p. 19 6

Understanding

Need

Today, the City needs an additional 1,247 affordable housing units across all five income levels today. That number will grow to 1,481 in 2030 and to 1,640 by 2040.

Focus on Solutions $125,000 Two-Earner Household The maximum affordable home price for a two-earner household, each earning minimum wage.

The data illustrates that solutions should focus on the income categories of need, which include Other Households, the upper two tiers of Moderate households and Extremely Low households. However, it is important to note that as one tier of affordability has a deficit of available units, the households in need consume units above or below their income level, creating demand in all categories.

Current Affordable Housing Demand

Affordable Housing Demand in 2040

Available Units vs. Demand = Need

Available Units vs. Demand = Need

205

996

205

1172

Extremely Low Income Households 791 Units

Extremely Low Income Households 967 Units

860

860

591

Very Low Income Households 1550

Very Low Income Households 854

Low Income Households

1550

958

Low Income Households 362

644 Moderate 1 Income Households

644

405

Moderate 1 Income Households

476

555

Moderate 2 Income Households 79 Units 310

673

344

476

Moderate 2 Income Households 145 Units 310

Moderate 3 Income Households 34 Units

Moderate 3 Income Households 73 Units

661

661

Other Households 343 Units

1004

621

383

1116

Other Households 455 Units U.S. BLS, Quarterly Census of Employment and Wages 2019

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Ranking the Concepts % of members who ranked this option

Group Vote 80% 70%

1

60% 50%

2

40%

3

4

5

30% Top Five Recommendations at a Glance 1 Hotel to Affordable Housing Conversion Add 843 new units to the existing Planned Development Housing District in phases to allow more existing hotels to convert to affordable housing.

2 Triangle Redevelopment Redevelopment of the Triangle Building and the Blayton Building to provide new affordable units in a mixed-income and mixed-use development pattern.

3 Workforce Housing at Waller Mill Construction of at least 35 workforce units on city property surrounding Waller Mill Reservoir.

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4 Mixed-Income Mixed-Use Plan Implement a design requirement for mixed-use and mixed-income on commercial properties and redevelopment applications on Capitol Landing Road.

5 Rehabilitation Grant Seek a Community Development Block Fund Grant(s) to assist in neighborhood-scale rehabilitation grants as a preservation tool for existing AFH units.

3 4 5

6

7

8

9

10

11

12

13

6 7

Avg. ranking by those members who ranked this option

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The workgroup narrowed more than 80 affordable housing initiatives to 13, and then voted to rank them to determine the priorities for the City of Williamsburg.

Ranking the Initiatives

What does the survey say?

The workgroup used an online voting tool to rank the 13 initiatives by priority.

This exercise was completed twice.

The group first ranked the choices as short-term initiatives and again as long-term, but the results proved ineffective in determining priority.

A second vote was then conducted to remove the short- and long-term distinction, forcing the group to narrow their list from 13 to seven. The above chart details the results of this final ranking.

The workgroup decided to focus this report and their recommendations on those concepts that received at least 50% of the vote. The eight initiatives also considered include: 6 – Inclusionary Zoning 7 – Two-story development requirement 8 – Soft Density 9 – Affordable Accessory Units 10 – Community Land Trust 11 – Impact/Linkage Fees 12 – PPP Loan Consortium 13 – W&M Assisted Employee Housing 9

Context

1 Hotel to AFH Conversion The City should add up to 843 new units to the existing Planned Development Housing District in phases to allow more existing hotels to convert to affordable housing.

Zoning Map

Willow Creek Apartments

How does it work?

The conversion of hotels to affordable housing has been permitted in the city since 2015 through the Planned Development Housing District (PDH).

This district is intended to “encourage adaptive housing by allowing conversion of a limited number of existing hotel/motel rooms located in the B-2 zoning district into affordable 10

housing, and thereby fulfilling a housing need not addressed by the city’s existing housing inventory.

The PDH district should be located to take advantage of proximity to existing transit routes and pedestrian and bicycle facilities and should not be located on sites that have significant redevelopment potential.”

Currently, 150 units are allowed, and 148 units have been constructed in The Flats at Williamsburg (100 units) and Willow Creek Apartments (48 units). In the B2 zoning district staff has identified 491 units as candidates for conversion.

If the ordinance were amended to include the B4 zone, an additional 352 units are candidates for conversion.

Implementation This concept can be implemented quickly and only requires a zoning change to increase the units available for conversion and encourage a diversity of unit types. Based on the demonstrated success of this program, the new units may be online as early as 2025.

Pre-Work

90

days

Impact

3

Years

Anticipated Impact Staff estimates this concept could produce up to 843 new units of affordable housing and preserve 34 existing affordable housing units in new buildings. This concept may address the unit deficit in the Extremely Low and Very Low income categories.

AFH Unit Creation = 843 AFH Unit Preservation = 0

Execution

Challenges 1. Loss of Commercial Properties 2. Increased School Population 3. Adjacent Property Acceptance 4. Lowering the Median Income 5. Community Acceptance 11

Context

2 Triangle Redevelopment The City should pursue redevelopment of the Triangle Building and the Blayton Building to provide new affordable housing units in a mixedincome and mixed-use development pattern.

Blayton Conceptual Site Plan

How does it work?

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The Williamsburg Redevelopment and Housing Authority currently manages 38 apartments for the elderly and disabled at a property known as the Blayton Building, constructed in the 1980s.

for the building to be demolished and replaced in its 5-Year Public Housing Authority Plan.

The redevelopment of the property presents an opportunity to expand the number of affordable housing units.

Due to age and obsolescence, the Authority is calling

Relocating the police station and repositioning the library offers the

chance to redesign the Blayton property and, across the street, the Triangle property to match the successful development style of Prince George Street.

Mixed-Use, Mixed-Income means commercial first floors with varied income residential above. In conjunction with the existing senior housing at Blayton, this plan is an exciting opportunity for an improved downtown.

Blayton Redevelopment Concept

Implementation This concept involves many steps including the relocation of the Police Department, solicitation of a development partner, and identification of funding. Staff estimates these steps could be completed in five years with construction completed in 2028.

Pre-Work

5

Years

Impact

7

Years

Anticipated Impact Staff estimates this concept could produce up to 200 new units of affordable housing and preserve 34 existing affordable housing units in new buildings. This concept addresses the unit deficit in the Low, Moderate, and Other Household income categories.

AFH Unit Creation = 200 AFH Unit Preservation = 34

Execution

Challenges 1. City Funding 2. Williamsburg Redevelopment Housing Authority Funding 3. Adjacent Property Acceptance 4. HUD Approval 5. Finding a Development Partner 6. Community Acceptance 13

Context

3 Workforce Housing

at Waller Mill

The City should proceed with the construction of at least 35 workforce units on city property surrounding Waller Mill Reservoir.

Example of Low-Impact Design Credit: Greenpod Intelligent Environments

How does it work?

The City of Williamsburg owns over 1,000 acres of land in York County along Waller Mill Reservoir.

These properties were purchased to provide a buffer and to protect the City’s reservoir. They are zoned (RC) Low-Density Single-family Detached, Agriculture, Military, Conservation Uses, and Environmentally Sensitive 14

these new homes to the existing workforce housing program administered by the Williamsburg Redevelopment and Housing Authority. This popular benefit allows people who work for the City to live near the City with a rental rate based on income.

Areas and (RR) LowDensity Single-Family Detached, and Farming.

Using the existing zoning, a low-impact and terrainbased design, about 35 single-family detached dwelling units could be constructed without posing a threat to the reservoir’s water quality.

The City could add

Number of Homes Allowed

Implementation This concept would require a Request for Proposals to select a builder and a financing partner. Establishing a builder and crafting the financing will require at least two years. If successful, we can expect to see the first units become available in 2029.

Pre-Work

2

Years

Impact

5

Years

Anticipated Impact Staff estimates this concept could produce 35 new units of affordable housing. This concept addresses the unit deficit in the Extremely Low, Very Low, Low, and Moderate income categories.

AFH Unit Creation = 35 AFH Unit Preservation = 0

Execution

Challenges 1. City Funding 2. WRHA Funding 3. Adjacent Property Acceptance 4. Finding a Development Partner 5. Community Acceptance 6. York County Objections 15

Context

Mixed-Income/ 4 Mixed-Use Plan The City should implement a design requirement for mixed use and mixed income on all new commercial spaces and redevelopment applications along Capitol Landing Road.

Requiring all new commercial and redevelopment applications along Capitol Landing Road to include mixed-use and mixed-income designs would force new designs to feature residential space and ensure that some residential units are income-restricted to meet affordable housing unit demands.

How does it work?

Mixed-Use properties are retail centers with residential units or mixed retail centers with office units, located in areas where higher-density development is desired.

These properties can be 16

designed horizontally (single story) or vertically (multistory). City Green on Richmond Road (right) is an example of a horizontal mixed-use property. The properties pictured above are vertical mixed-use.

Implementation Implementing this concept can be done in three ways.

1. Adopt a zoning amendment that requires mixed-use/mixed-income development in these commercial zones. (Mandatory) 2. Adopt design guidelines for this corridor that outlines the style of design desired. (Mandatory) 3. Create density and height bonuses for projects that use the preferred design style. (Voluntary) Pre-Work

90

days

Impact

10

Years

Anticipated Impact Staff estimates this concept could produce up to 400 new units of affordable housing. This concept addresses the unit deficit in the Low, Moderate, and Other Household income categories.

AFH Unit Creation = 400 AFH Unit Preservation = 0

Execution

Challenges 1. Developer Interest 2. Adjacent Property Acceptance 3. Community Acceptance 4. Commercial Demand 5. Apartment/Condominium Market Saturation 17

Context

5 CDBG Rehab Grants The City should seek a Community Development Block Fund Grant(s) to assist in neighborhoodscale rehabilitation as a preservation tool for existing affordable housing units.

Braxton Court

How does it work?

The federal Community Development Block Grant program can provide loans funds for housing improvements that meet Department of Housing and Community Development (DHCD) Housing Quality Standards for lowto moderate-income occupants of substandard housing units.

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The grant must be used to rehabilitate or replace substandard housing, and it offers the property owner a forgivable loan, which is repaid on an “ability to pay” scale. Braxton Court previously received one of these grants.

Rehabilitating homes keeps affordable

homes in the housing stock and occupied by low- to moderateincome residents. The City would identify a neighborhood with residents in those income tiers and housing stock that needs rehabilitation, and then apply for a CDBG grant for funding.

These grants make essential improvements to older housing stock, such as HVAC, plumbing, electrical, and roof repair.

The City could partner with a housing agency or nonprofit on the grant application and work.

Grant applications are highly competitive and often require a couple of years of submittal before they are approved.

Implementation This concept requires identifying neighborhoods to benefit and applying for state funds. Because this process is highly competitive, we have estimated five years to get an application approved. Funds could be awarded in 2026.

Pre-Work

5

Years

Impact

6

Years

Anticipated Impact Staff estimates this concept could preserve as many as 147 affordable housing units. Staff has identified three neighborhood candidates. This concept addresses the unit deficit in the Extremely Low, Very Low, and Low income categories.

AFH Unit Creation = 0 AFH Unit Preservation = 147

Execution

Challenges 1. Competitive Grant 2. Willing Homeowners 3. Recuring Grant Approvals 4. Does not address exterior 5. Administrative Capacity 19

Additional

Concepts The first five recommendations were prioritized based on the time to impact, affordable housing (AFH) units created, and income category addressed. The additional eight concepts are valid AFH strategies and could be considered as further action steps.

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Inclusionary Zoning

Inclusionary zoning is a zoning policy that either requires or encourages, through density or height bonuses, the inclusion of AFH units in a market rate development or redevelopment. IZ is the most prevalent AFH strategy.

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Soft Density

Soft density is seen as an equity strategy. As a practice, this tool eliminates single-family-only zoning categories and adds a minimum density of duplexes to each zone.

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7

Two-Story Development Requirement

Requiring at least two-story structures provides for higher density and the opportunity for AFH units above commercial or office space.

9

Affordable Accessory Units

Allowing detached accessory dwelling units for owner-occupied homes makes the home more affordable and adds a new affordable unit.

While housing affordability has gotten significant attention in the past several years, housing affordability has been a longstanding issue for the city for several decades.

– 2021City of Williamsburg Housing Affordability Analysis, p. 17

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Community Land Trust

Using a Community Land Trust to purchase properties and then sell the structure lowers the purchase price and keeps the home affordable in perpetuity.

12

PPP Loan Consortium

A public-private partnership loan consortium is a partnership of for-profit and not-for-profit entities for the purpose of funding affordable housing projects.

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Impact/Linkage Fees

Imposing impact fees on new residential development applications or linkage fees on new commercial applications provides a funding stream for a multitude of AFH projects.

13

W&M Assisted Employee Housing

Employer-assisted housing as an employee benefit for university faculty and staff is used as a recruitment and retention tool for its staff in high-cost housing markets.

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Final

Thoughts Setting targets, establishing a plan, and executing that plan is an iterative process. We should continue the process until we have solved the problem.

Vision Matters One Williamsburg is our vision for the Williamsburg of 2040. At its core, One Williamsburg means a welcoming City where all people have the opportunity to thrive.

The City of Williamsburg provides recurring housing assistance to children, adults, and families.

Without stable housing they cannot thrive and achieve optimal health.

These five recommended actions will not end the need for affordable housing in the City, but we hope they are the start of a successful, sustained effort.

We thank City Council for this opportunity to serve and for having the courage to tackle a problem without handles.

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Regional Application Affordable housing issues are not unique to the City. Given the interconnectedness of the Historic Triangle communities, regional solutions are needed to have an exponentially greater impact than any strategy implemented by any single jurisdiction. Therefore, opportunities for regional cooperation should be sought. The strategies identified in this report may have regional application, and the City remains open to participating with our partners on regional strategies.

City of Williamsburg Vision Statement One Williamsburg that is courageously leading, innovating a modern city, prioritizing safety and wellness, engaging with our partners, while connecting with the world.

Learn More Click here for the 2018 Williamsburg Housing Study

Click here to explore the AFH plans studied by the workgroup.

2021 Williamsburg Housing Affordability Analysis

Email us your thoughts at citymanager@williamsburgva.gov

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Williamsburg, Virginia 401 Lafayette Street Williamsburg, Virginia 23185 757-220-6100 citymanager@williamsburgva.gov williamsburgva.gov